Economy growth is steady

By Martin Crutsinger THE ASSOCIATED PRESS

Thursday

Nov 29, 2012 at 12:06 AM

A pickup in consumer spending and steady home sales helped lift economic growth from October through early November in most parts of the United States, according to a Federal Reserve survey released Wednesday. The one exception was the Northeast, which was slowed by Superstorm Sandy.

Growth improved in nine of the Fedís 12 regional banking districts, the survey said. Growth was weaker in New York, Philadelphia and Boston ó areas where Sandy caused widespread disruptions.

The survey noted that growth was better despite nervousness about the fiscal cliff. Thatís the name for automatic tax increases and spending cuts that could kick in next year if Congress and the Obama administration canít reach a budget deal before then.

Hiring increased in more than half of the districts. But manufacturing shrank or slowed in seven regions and was mixed in two others.

ďThe weakening in the tone of the Beige Book is clearly linked to the massive disruptions and damage related to Hurricane Sandy and there is no evidence of a wider slowdown in the economy,Ē said Terry Sheehan, an analyst at Stone & McCarthy Research Associates.

The report, called the Beige Book, provides anecdotal information on economic conditions around the country from October through Nov. 14. The information will be used at the Fedís Dec. 11-12 meeting.

Many economists believe the Fed could announce plans to buy more Treasury bonds at that meeting to replace a program set to expire at the end of the year. The goal of the program is to lower long-term interest rates and encourage more borrowing and spending.

Recent government and private reports show the economy improved in October and early November, even as Sandy halted business activity along the East Coast.

Employers added 171,000 jobs last month and hiring in September and August was stronger than previously thought.

Rising home values, more hiring and lower gas prices pushed consumer confidence in November to the highest level in nearly five years.

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